Delhivery Limited IPO

Apply 0
Avoid 0

(i) Business Model of Delhivery IPO

1. They operate an asset light business model, leasing all of its logistics facilities. However, pursuant to the FedEx Asset Purchase Agreement which came into effect on December 5, 2021, ownership of nine facilities aggregating 12,671 sq. ft. is in the process of being transferred from FedEx to Delhivery.

2. Delhivery is mainly investing in technology, comprising investments in the team and other infrastructure relating to data intelligence, proprietary logistics operating system, cyber security, hardware, software and cloud infrastructure.

3. They provide a full range of logistics services, including express parcel delivery, heavy goods delivery, PTL freight, TL freight, warehousing, supply chain solutions, cross-border express and freight services and supply chain software, along with value added services such as e-commerce return services, payment collection and processing, installation and assembly services and fraud detection

4. Delhivery has engaged over 11,000 contractors and network partners across various first mile, middle mile and last mile services and 33,836 last mile delivery agents in the month of December 2021.

5. They have also deployed 36,956 contracted workers who were active in the operations (excluding daily wage manpower, security guards).

6. 99.52% of the total trucks and other transportation vehicles were leased from third-party fleet partners. So, they don’t own these vehicles. 

7. They operate a pan-India network and provide the services in 17,488 postal index number (“PIN”) codes, as of December 31, 2021.

(ii) Risk in the business

1. They are totally dependent upon third party network providers for transferring parcels from one destination to another. 

2. The entire cost of purchasing, maintaining, servicing lies in the head of third party provider. In 2016, vehicle manufacturers were agreed to comply with BS-VI norms, therefore, the third party providers have to purchase new vehicles which will increase the cost and if they are not capable of doing it, Delhivery may loose these network partners. 

3. Logistic is a very low moat business and highly competitive. 

(iii) Delhivery is the largest and fastest growing fully-integrated player in India by revenue in Fiscal 2021. Delhivery aim to build the operating system for commerce, through a combination of world-class infrastructure, logistics operations of the highest quality and cutting-edge engineering and technology capabilities.

(iv) Delhivery mission is to enable customers to operate flexible, reliable and resilient supply chains at the lowest costs. Delhivery provides supply chain solutions to a diverse base of over 21000 active customers such as e-commerce marketplaces, direct-to-consumer e-tailers and enterprises and SMEs across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing.

(v) This is achieved through high-quality logistics infrastructure and network engineering, a vast network of domestic and global partners and significant investments in automation, all of which are orchestrated by its self-developed logistics operating system that drive network synergies within and across its services and enhance their value proposition to customers.


  • Same-day/Next-day Delivery
  • Time-defined/Slot-based Delivery
  • Person Specific/Address Specific Delivery
  • Returns Management


  • Product Replacement/Exchange Services
  • Large/Oversize Order Delivery
  • High-value Product Delivery
  • HAZMAT/Dangerous Goods Delivery


  • Real-time Monitoring and Control
  • Consignee Address Validation
  • Fraud Detection
  • Flexible Payment on Delivery

Competitive Strengths

1. Rapid growth, scale, and synergies across business lines
2. Proprietary logistics technology systems
3. Data intelligence capabilities
4. An integrated portfolio of logistics services
5. Asset-light business model enabling rapid scale up
6. An experienced and entrepreneurial team from diverse backgrounds

Objects of the Delhivery Limited IPO:

The Offer comprises a Fresh Issue and an Offer for Sale aggregating up to ₹24,600 million by the Selling Shareholders TheCompany proposes to utilise the Net Proceeds towards the following objects: 1. Funding organic growth initiatives; 2. Funding inorganic growth through acquisitions and other strategic initiatives; and 3. General corporate purposes.

Delhivery Limited IPO Details:

Open Date: May 11 2022
Close Date: May 13 2022
Face Value: ₹ 1 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 5,235 Cr.
Lot Size: 30 Shares
Issue Price: ₹ 462-487 Per Equity Share
Listing At: NSE,BSE
Listing Date: May 24 2022

Promoters And Management:

Deepak Kapoor is the Chairman and Non-Executive Independent Director of the Company. He holds a bachelor’s degree in commerce from the University of Delhi and was conferred a doctorate in philosophy by the Amity University, Uttar Pradesh. He is a fellow member of the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India. He has been certified as a Fraud Examiner by the Association of Certified Fraud Examiners. He was previously associated with PricewaterhouseCoopers Private Limited as Chairman and Chief Executive Officer Sahil Barua is the Managing Director and Chief Executive Officer of the Company. He holds a bachelor’s degree in mechanical engineering from the National Institute of Technology Karnataka, Surathkal and a post-graduate diploma in management from the Indian Institute of Management Bangalore. He has previously been associated with Bain & Company India Private Limited as Consultant. Sandeep Kumar Barasia is an Executive Director and Chief Business Officer of the Company. He holds a bachelor’s degree in commerce from the Bond University and a master’s degree in business administration from the London Business School, University of London. He was previously associated with Bain & Company India Private Limited as a Vice-President (Partner).

Financials of Delhivery Limited IPO:

Particulars (In Cr.) Jun-21 2021 2020 2019
Sales 1,318 3,647 2,781 1,654
Freight, Handling & Servicing Cost 868 2,778 2,184 1,251
Purchases of Stock-In-Trade 162 10 6 0
Change in Inventory -6 0 0 0
Employees Benefit Expense 206 611 491 345
Fair Value P&L on Financial Liabilities 32 9 0 1,481
Other Expenses 127 361 272 196
Operating Profit -71 -122 -172 -1,619
OPM -5.39% -3.35% -6.18% -97.88%
Other Income 46 192 208 41
Finance Cost 23 89 49 36
Depreciation 82 355 256 170
Profit Before Tax -130 -416 -269 -1,783
Total Tax 0 0 0.12 0
PAT -130 -416 -269 -1,783
NPM -9.86% -11.41% -9.67% -107.80%
EPS -2.41 -8.05 -5.22 -47.22

Comparison With Peers:

Name of the Company Face Value EPS PE RoNW Book Value Sales (In Cr.) PAT (In Cr.) M.cap (in Cr.)
Delhivery Pvt Ltd 1 -8.05 - -14.66% 54.79 3,647 -416 36,000
Blue Dart Express Ltd 10 141 44.2 21.40% 286 3,288 102 16,712
TCI Express Ltd 2 35.2 48.7 25.80% 126 844 101 7,141
Mahindra Logistics Ltd 10 5.22 91.1 5.39% 79 3,264 30 3,654

Recommendation on Delhivery Limited IPO:

Review and Recommendation of  Delhivery by InvestorZone is 5/10 1. Revenue has grown from 1600 Crores in FY19 to 3600 Crores in FY21. Excellent growth in revenue. 2. Despite magnificent growth in the revenue, the company due to its high freight, employees and marketing cost, the EBITDA level is still negative. 3. It is an asset light model. All the logistics warehouses, trucks, and gateways are on lease. This help company to control cost on capital expenditure. On the other hand, Blue Dart, the nearest peer is having 11000 Trucks and 5 Boeing Planes. 4. The risk in the business is, they are totally dependent upon third party network providers for transferring parcels from one destination to another. Any breach of contract with network providers will result in business loss for Delhivery. 5. Delhivery is doing business in very competitive market and currently, 70% revenue comes from e-commerce. Though over the years company has diversified its client base. Currently, Amazon and Flipkart uses services of players like Delhivery, E-com Express, etc. for logistic needs. But recently, Amazon has started its own logistic company. This is direct threat to Delhivery business. 6. Asking valuation is looks on higher side at ~32000 Crores of Mcap.

Registrar of Delhivery Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Delhivery Limited N24-N34, S24-S34, Air Cargo Logistics Centre-II, Indira Gandhi International Airport, New Delhi 110037 Delhi, India Phone: +91 124 6225602 Email: Website

Discussion on Delhivery Limited IPO:


    it is a money trap as substantial part is to be pocketed by promoters….,The IPO is highly priced by greedy promoters….The company is still in teething stage and do not enjoy confidence of public at large….Not providing a reliable service…even after collecting fee in advance…and there are lot of complaints…
    Not worth applying and loosing hard earned money..

Leave a Reply